Collection Agencies

A collection agency is a business hired by a creditor to recover money that’s owed. If you’ve missed payments on a loan, credit card, or bill, your creditor may send your account to a collection agency.

Once that happens, the agency becomes your main point of contact for repayment. But they must follow strict rules when communicating with you.

Your rights when dealing with a collection agency

Collection agencies and their staff must be licensed. They are not allowed to:

• Call before 7 a.m. or after 9 p.m. Monday to Saturday

• Call before 1 p.m. or after 5 p.m. on Sundays

• Contact you on holidays

• Call you at work or speak to your employer

• Use threats, intimidation, or abusive language

• Discuss your debt with anyone else unless you give written permission

• Charge you more than what you owe

• Call so often that it feels like harassment

• Hide their identity or the name of the company they’re collecting for

You can ask a collection agency to contact you only in writing or through a lawyer. Send your request by registered mail or fax and keep a copy for your records.

If you believe a collection agency is breaking the rules, you can Submit a Complaint to the Financial and Consumer Services Commission.

Tips for managing collection calls

Talk to the agency directly

If you’re ready to make payment arrangements, speak with the collection agency—not the original creditor.

Correct mistakes

If there’s an error in your account, notify both the agency and the creditor. Provide documentation to support your claim.

Make a payment plan

If you can’t pay the full amount right away, suggest a delayed lump sum or monthly payments.

Get receipts

Always ask for proof of payment—whether it’s a receipt from the agency or a cancelled cheque from your bank.

Avoid bounced payments

Make sure you have enough money in your account before writing a cheque or setting up a pre-authorized payment.